Midyear Outlook 2026: Policy, Buildouts, & Bottlenecks
LPL Research’s Midyear Outlook 2026: Policy, Buildouts, & Bottlenecks highlights how policy decisions, geopolitical events, and economic developments continue to shape the investment landscape. While uncertainty surrounding U.S. midterm elections and new Federal Reserve leadership may create market volatility, LPL remains constructive on U.S. equities due to strong corporate earnings and improved return expectations. The report notes a more mixed outlook for international markets, with Europe facing ongoing challenges and emerging markets likely to see uneven performance. Given the potential for policy-driven market swings, LPL emphasizes maintaining a well-diversified portfolio that includes stocks, bonds, and alternative investments to help investors navigate the second half of 2026 and stay focused on their long-term financial goals.
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This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
All data is provided as of July 7, 2026.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All index data from FactSet.
The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Past performance does not guarantee future results.
Asset allocation does not ensure a profit or protect against a loss.
This research material was prepared by LPL Financial, LLC.
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